Amazon, President Trump, Microsoft discussed on Squawk Pod
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Why do I get it? When do I get it? Last Taylor Swift tells music execs. You need to calm home down and let her play her greatest hits. There's so much bad blood between these two I'm CNBC producer. Katie Kramer it's Friday November Fifteenth Twenty Nineteen Squawk. pod Begins Right now by three two one. Good morning everybody. Welcome to squawk on. CNBC we're live from the Nasdaq market site. In Times I'm square. I'm becky quick along with Joe and Andrew Ross. Sorkin first up today on the podcast cloud wars Amazon strikes back over. The Jed by Amazon says that it is challenging the Pentagon's Award of cloud contract. That could be worth up to ten billion dollars to Microsoft. It's accusing the government of what it calls. Deficiencies sees errors and unmistakable bias during the bidding process. Amazon machine is the front runner for the defense contract. which is known as Jedi back in August? President Trump said that Amazon's Amazon's bid for the contract was under review after complaints by other companies. It was later awarded to Microsoft Amazon. said it would have been challenging for a US agency to to be objective in the contract process after the president disparaged Amazon and CEO. Jeff Bezos at a news conference today and South Korea Defense Secretary Marquess rejected any suggestion of bias. In that decision I have not heard that recent claim by whoever made it with regard to the competition Second can as you know. I recused myself from involvement on the competition but I am confident that it was conducted freely and fairly without any type of outside influence as as I mentioned. He removed himself from reviewing the deal because his son works for IBM which also bid for that contract view have looked into what both probably looked in. It's a very long drawn out story that was initiated by Oracle and it was thirteen months ago and Microsoft thirteen months ago could not have gotten it. But but they've almost got to the highest level of security now cert- sick they've also designed some that's supposedly really good. There's also a lot of criticism about the revolving door nature sure of Amazon's relationship with the Defense Department which IBM and Oracle both were squawking about any of that trump cover even if he did do it. Because of this. It definitely cannot prove the conundrum here the entire that we shouldn't be even having a conversation about welcome how a political process right corrupted these government contracts. And unfortunately that's where we are at. We've talked about it on the show before. There's this book speechwriter Ryder where he gets the phone call. We're maddest gets a phone call literally from the President and the President says on the phone how. How do we screw Amazon out of this? That's not there you think that. If if Jeff Bezos didn't want any appearance of any any of these problems do you think it was a good idea to buy the post in the first place vanity I as a vanity project. Actually if you're a shareholder of Amazon you could make the argument if you wanted to that. The purchase of the Washington Post has made Amazon's life more complicated. Now at the same time you can make the reverse argument demint. You could make the reverse argument that this is actually given Amazon more power more sway and more influence so I could make. I could argue this both ways in the same way magic magic that the president will argue the Pentagon. There's so much going in to discount. Saadi is you know F- tier and they're they've got fifteen percent market share Amazon's four whatever it is and there. We know how far try and how many strides they're making valid points. It would be much cleaner or if we didn't have to deal with the appearance of the other things that the Pentagon decided. They're going to get a single contract they're all fragmented so there's all these legacy guys like or corn IBM IBM. They're all getting getting a piece of the pie so they're going to. Suddenly they designed this whole thing around Amazon because of all the Amazon employees that are now or vice versa all the revolving evolving so that could stink to high heaven. You think Amazon does everything aboard all the time you you did you get talking points. Last night. I did not get talking. Points just knew what I was going to be up against. I knew I knew what the knee jerk reaction was. Egypt reacted to even have a conversation. I'm just saying that that Microsoft is a great company and just say Oh immediately that they cheated because president because trump eight. That's not fair to Microsoft's there's there's nothing that suggests that the president by by the twitter about his own hatred for not but why do you think it's and why did they. Why did they go to the core the not go to the GAO where they can freeze this and not even getting Elon? Musk you would be much better off if you weren't making all these he's comments and why did they go to the court not to the jail. Gao We've got allow the implementation of this immediately in the court. You know that this it's already. He starts Microsoft word. He started doing it. Why didn't they go to jail if they could lock it the? Gao Is truly independent to that gives them more. It gives them more time to get their act together. Look Microsoft has made great strides in the past thirteen. Look I agree I agree. I'm not on the Dell. That's all I'm taking making it and I don't think he deserves it. He's really steering humor. Something that's not what this is about all look. Is it possible to push back against the mainstream of everything that goes on with this guy. Can't this is a voice in the wilderness as an impossible just we pro quo. This is actually a true business issue for for all of the things we're always talking about conflicts of interest and how people are trist should be staying above board trying to avoid even the economy. Also conundrum is you have it now with this contract you had around look at the interview with making about some trust issues making doesn't want these things to be political. People Make Endeavour. He wants people to think that he is not doing anything that he's using. His mind is brain to make the right decisions and yet well then why go after comcast after saying he thought it was perfectly fine. They could've the president but the point is even if he was completely within his rights to do that because the president is out there tames when we when we when we get changed the perception we get pressure from our government. For our guys use Boeing and over in Europe all those countries. Yeah pressure people to use Airbus. Don't you just live in the real world and know that you're never going to know what goes on behind the same argument with Powell right. Does it make it much more difficult for Jay Powell to be making decisions when the president saying something and it looks like he's caving to his influence it would just be easier if there wasn't so much noise you just live in the real world and be happy where unemployment is or the markets are for more on what it was on his calling unmistakable bias. WE'RE GONNA turn to Ed Lee New York Times media reporter and a CNBC contributor. And now it's GonNa be against one that's fine for not afraid Is here my point here. The side of the. You're you're always on with the New Year so you're always on the side of right outsider. So and democracy in the darkness and all that crap in Truth and truth hit and look you're together you're over. Here's all I'm going to say. We saw this morning and we we sort of going to say that for thirteen. The reason that Microsoft.